Discovery Air Drops Bid to Buy VIH

By James T. McKenna | March 9, 2007

Discovery Air says its interim agreement to purchase VIH Aviation Group Ltd. has been terminated. Based in London, Ontario, Discovery Air in late January agreed to buy VIH for $50 million (Canadian) in cash and $117 million in its Class A shares. But the company this week said due diligence of VIH, which was founded in 1955 as Vancouver Island Helicopters and operates 60 helicopters in forestry, oil and gas, EMS and other markets, revealed “material issues” that argued for an adjustment, according to the London, Ontario Free Press. Discovery has been buying up Canadian fixed- and rotary-wing operators and said its goal “is to consolidate the fragmented Canadian niche aviation industry.” For related news